WEBVTT - The 2 Documents Everyone Should Have Before They Die 0:00:16.200 --> 0:00:21.480 Hey, hey, hey, I'm back in a black and were brown. 0:00:21.800 --> 0:00:24.400 This is Tiffany Elice, Brian Ambish. 0:00:24.280 --> 0:00:27.440 And Mandy Woodruff co Ho. 0:00:29.600 --> 0:00:39.120 There, So, Maddy, are you ready to die? Segue? How 0:00:39.280 --> 0:00:41.400 that wort segment? I bet you're not. I bet you're not. 0:00:42.120 --> 0:00:45.920 Uh No, I'm scared though. 0:00:48.240 --> 0:00:50.720 It's really a question that we should all kind of 0:00:50.720 --> 0:00:53.920 ask ourselves, or do we have the two most important 0:00:53.920 --> 0:00:57.240 documents that you ought to have before you pass on 0:00:57.320 --> 0:01:01.640 from this life and onto whatever the next stage that 0:01:01.720 --> 0:01:04.839 you believe in. And so we have brought on the amazing, 0:01:05.440 --> 0:01:12.680 the incomparable these splendiferous art, beautiful, smart art Steel art 0:01:12.880 --> 0:01:17.920 Is Steel is a state planning attorney who helps entrepreneurs 0:01:17.959 --> 0:01:21.360 and families protect what matters most. She actually started her 0:01:21.480 --> 0:01:23.960 career I'm gonna say this wrong because I don't know, 0:01:24.319 --> 0:01:28.960 it just looks crazy. Yes, yeah, who, thank you Jesus. 0:01:30.080 --> 0:01:33.160 And she went to work for work at the General 0:01:33.240 --> 0:01:37.640 Tax Council for Discovery Communications, Yes, like Discovery Channel. She's 0:01:37.720 --> 0:01:39.679 kind of a big deal. She started her own law 0:01:39.720 --> 0:01:43.720 firm because you know, Flyinis in twenty fourteen, and she 0:01:43.840 --> 0:01:48.480 started legal Ease, get it like legal Ease like down 0:01:48.600 --> 0:01:52.960 Road for Entrepreneurs. 0:01:54.040 --> 0:01:56.720 I'm gonna take this and play this every single time. 0:01:56.760 --> 0:02:01.639 Somebody introduces Legal Ease for Entrepreneurs podcast in twenty sixteen, 0:02:01.640 --> 0:02:04.560 which is amazing which a parents minority business owners to 0:02:04.680 --> 0:02:06.720 tackle the legal needs for their business. 0:02:06.960 --> 0:02:13.200 Welcome, Thank you so much for having me. I'm so excited. 0:02:13.560 --> 0:02:17.400 What in the intro I said, if you handle the intro, 0:02:17.480 --> 0:02:18.240 and that's what we got. 0:02:19.800 --> 0:02:21.880 Today has been like the worst day of my life. 0:02:22.040 --> 0:02:24.600 Oh so I say no, But you know what, the 0:02:24.639 --> 0:02:26.400 best way to get out a bad day is to 0:02:26.639 --> 0:02:32.000 just make the next moments like amazing, you got get amazed? Yeah, exactly. 0:02:32.520 --> 0:02:35.679 Yeah, that's that's what I bring when I come to podcasts. 0:02:36.400 --> 0:02:38.880 Well, this is a topic that I'm really really excited 0:02:38.880 --> 0:02:42.119 about because you know, on a recent episode, we got 0:02:42.160 --> 0:02:44.680 some questions around life insurance and it just reminded me 0:02:44.720 --> 0:02:46.680 that it's, Yeah, it's one of those questions that people 0:02:46.760 --> 0:02:48.960 don't like to I mean, just the fact that Tiffany asked, 0:02:49.280 --> 0:02:51.200 are you ready to die? I got really hot and 0:02:51.200 --> 0:02:53.920 sweaty just thinking about that. But when you break it 0:02:53.960 --> 0:02:56.679 down into just like the simple things, the checklist of 0:02:56.800 --> 0:02:59.640 every the few things, the simple things everyone should have 0:02:59.639 --> 0:03:02.720 in place, it's not you know, it's not that intimidating, 0:03:02.720 --> 0:03:05.200 it's not that scary, and it's something that you can 0:03:05.240 --> 0:03:08.560 do and forget about until your day. 0:03:08.400 --> 0:03:12.200 Comes and then you still never have to do and then. 0:03:12.120 --> 0:03:17.720 An angel problem after that point. Yeah, But my guilty 0:03:17.720 --> 0:03:19.239 truth is that I'm not ready to die. I don't 0:03:19.280 --> 0:03:21.720 have anything art. I don't have a power. I don't 0:03:21.720 --> 0:03:23.720 have a state plan. I don't even know what that is. Really, 0:03:23.800 --> 0:03:27.200 I don't have a will. I don't know what I'm doing. 0:03:27.520 --> 0:03:30.079 I don't know about Tiffany. But I feel like I 0:03:30.960 --> 0:03:32.880 want to get it right. I've just been sort of 0:03:32.880 --> 0:03:36.320 intimidated for so long, and you know, I suffer from 0:03:36.360 --> 0:03:39.360 that young, invincible thing where I was in my twenties 0:03:39.400 --> 0:03:42.200 and now I'm hitting the threes and I I'm feeling 0:03:42.240 --> 0:03:44.120 a little bit more mortal every day, and I want 0:03:44.160 --> 0:03:45.080 to get my stuff together. 0:03:45.920 --> 0:03:51.160 Wait until you have kids, think I do have I 0:03:51.200 --> 0:03:52.360 do have life insurance. 0:03:52.520 --> 0:03:55.480 I got that when I was young and popping in 0:03:55.520 --> 0:03:57.400 my twenties and I bought a condo. So I was like, ooh, 0:03:57.400 --> 0:03:58.800 if I die, Like, how do I got to pay 0:03:58.840 --> 0:04:01.600 for this thing? Other than that, I don't have anything 0:04:01.680 --> 0:04:03.680 like I don't have a will, although I do have 0:04:03.720 --> 0:04:07.040 a really great business lawyer who is drawing up some 0:04:07.080 --> 0:04:09.720 contracts for me. Now about what happens I have a 0:04:09.720 --> 0:04:12.680 business partner. What happens if either one of us passes 0:04:12.840 --> 0:04:16.280 and leaves a business, you know, like prematurely. But other 0:04:16.320 --> 0:04:18.680 than that, yeah, I don't. I don't have any other 0:04:19.560 --> 0:04:23.840 My plan is quite honestly, to live forever. So I 0:04:23.880 --> 0:04:28.120 hope that. But what should we do? Please? Get us started? 0:04:28.200 --> 0:04:33.280 What's the if we don't have anything? If you are Mandy, right, 0:04:33.360 --> 0:04:35.279 not Tiffany, because I have a little something, if you 0:04:35.279 --> 0:04:38.160 were Mandy. What's the first thing? 0:04:38.520 --> 0:04:39.279 Where do we start? 0:04:39.279 --> 0:04:39.840 What should we do? 0:04:39.920 --> 0:04:45.520 Okay? Okay? So first I think I like for people 0:04:45.560 --> 0:04:48.839 to start to think about a state planning differently. It's 0:04:48.880 --> 0:04:51.880 it's not so much if we didn't think about it 0:04:52.000 --> 0:04:55.839 or associated so much with death as much as with 0:04:56.120 --> 0:05:00.680 a legacy and what we want to leave behind. I 0:05:00.680 --> 0:05:03.160 think we would have a very different approach to it. 0:05:03.480 --> 0:05:05.320 And when I talk when you talk about like what 0:05:05.400 --> 0:05:07.880 you want to leave behind? I think a lot of 0:05:07.880 --> 0:05:12.280 of us think about how we want people to remember us, 0:05:12.839 --> 0:05:15.080 but we don't think about death, right, we don't want 0:05:15.080 --> 0:05:17.120 to think about that day that will die, but we 0:05:17.240 --> 0:05:20.240 think about how we would want to be remembered, like 0:05:20.320 --> 0:05:22.799 what footprint would we want to leave on this earth 0:05:22.839 --> 0:05:25.360 and what would we want people to say about us? 0:05:25.640 --> 0:05:28.120 And I think that if we think about estate planning 0:05:28.160 --> 0:05:34.039 that way, then it's not so taboo. But that's definitely 0:05:34.120 --> 0:05:37.560 a problem and it's and it's one in the black 0:05:37.560 --> 0:05:41.719 community that is just so prevalent and it's debilitating, is 0:05:41.760 --> 0:05:46.360 actually hurting us, and it's it's interesting because I'm a 0:05:46.440 --> 0:05:49.479 Christian and I believe in Jesus Christ. I believe that 0:05:49.520 --> 0:05:51.680 he is my Lord and savior. I believe that when 0:05:51.720 --> 0:05:53.800 I die, by his grace, I will go to Heaven. 0:05:54.320 --> 0:05:57.880 And so it's it's not something that I mean, yeah, 0:05:57.920 --> 0:05:59.440 I don't know what's going to happen. I don't want 0:05:59.440 --> 0:06:04.200 to die in a horrible accident. But I'm okay with that, 0:06:04.600 --> 0:06:07.960 and most Christians say they are. But then still we 0:06:08.120 --> 0:06:11.679 just avoid this topic because it's like it's so negative. 0:06:11.680 --> 0:06:13.839 God forbid, don't talk about dying. But it's like it's 0:06:13.839 --> 0:06:15.480 the one thing that he promises us. 0:06:15.440 --> 0:06:19.160 Right, it's a well, just to interrupt for a second, 0:06:19.200 --> 0:06:21.320 it's an individual. It's like you're thinking about it in 0:06:21.360 --> 0:06:23.839 your own in the sense of yourself. Oh, you know, 0:06:23.960 --> 0:06:26.279 when I pass on, I'm not afraid to die. I 0:06:26.320 --> 0:06:28.520 know I'll be taken care of, you know, with whatever 0:06:28.520 --> 0:06:32.120 religion you might believe in. But it's about thinking beyond yourself, 0:06:32.520 --> 0:06:35.000 Like what about the people you leave behind? Is that 0:06:35.040 --> 0:06:35.640 what you're kind of. 0:06:36.320 --> 0:06:40.120 Yeah, exactly, because you will leave, you will leave. I mean, 0:06:40.160 --> 0:06:43.600 for most of us, we will leave at least one 0:06:43.680 --> 0:06:46.120 person who loves us dearly who is going to be 0:06:46.760 --> 0:06:52.719 significantly impacted by our our loss or their loss of us. Right, 0:06:52.800 --> 0:06:55.640 So not only do you know, we hope that that 0:06:55.680 --> 0:06:58.480 person recovers from their grief, but we also don't want 0:06:58.520 --> 0:07:02.599 to leave them in a financial mess when we die 0:07:02.839 --> 0:07:05.640 if there's something that we can do about it. So 0:07:06.839 --> 0:07:09.440 when you think about a state planning, there's like a spectrum. 0:07:09.480 --> 0:07:12.160 I like to say, I think it goes. It starts 0:07:12.160 --> 0:07:16.360 at planning for incapacity, and a lot of people, if 0:07:16.400 --> 0:07:18.600 they do get to the topic of a state planning, 0:07:18.880 --> 0:07:22.000 they never talk about incapacity. All they think about is 0:07:22.000 --> 0:07:25.320 like Tiffany who goes and gets the life insurance policy, right, 0:07:25.800 --> 0:07:29.240 but that life insurance policy is only paid out if 0:07:29.280 --> 0:07:34.440 you die? What happens if you're in a car accident? Okay, 0:07:34.480 --> 0:07:37.120 So first of all, in order for me to make 0:07:37.200 --> 0:07:39.240 my point, some bad things will have to happen. 0:07:39.320 --> 0:07:43.320 Okay, I've already knocked on wood and too hot oil, 0:07:43.440 --> 0:07:44.400 so we don't have. 0:07:44.400 --> 0:07:47.240 To do it every time, right, exactly covered by the blood. 0:07:47.480 --> 0:07:54.320 So what happens if you're in an accident and you're incapacitated? You, 0:07:55.560 --> 0:07:58.040 let's say you didn't have a partner, a business partner, 0:07:58.760 --> 0:08:05.640 and you're in a coma, who does anything? Who has 0:08:05.800 --> 0:08:10.480 access like permission to go to your bank account and 0:08:10.720 --> 0:08:16.040 take money out for payroll? Who has the ability to 0:08:16.280 --> 0:08:19.560 take money out of your personal account to pay your 0:08:19.600 --> 0:08:24.360 mortgage on your home, or your car payment, or your 0:08:24.560 --> 0:08:28.920 power bill or your rent right. So a lot of 0:08:28.960 --> 0:08:32.200 people skip over that step of what happens if something 0:08:32.240 --> 0:08:35.000 happens to me? But I don't die, because a lot 0:08:35.000 --> 0:08:38.080 of stuff will happen automatically when you die, but a 0:08:38.120 --> 0:08:42.440 lot nothing happens if you're incapacitated. So the number one 0:08:42.480 --> 0:08:47.040 document that I say every single person should have single 0:08:47.679 --> 0:08:52.440 not single, married kids, not with the father or mother whatever, 0:08:53.480 --> 0:08:56.800 even children, even people who are over eighteen going to college. 0:08:57.200 --> 0:09:01.040 Is what's called a power of attorney, when that document 0:09:01.400 --> 0:09:06.040 gives whoever you name, the authority to act on your 0:09:06.080 --> 0:09:09.720 behalf in your stead as if it were you. Now, 0:09:09.840 --> 0:09:12.600 you can have two types of power of attorney. You 0:09:12.640 --> 0:09:15.800 can have what's called a general durable power of attorney, 0:09:16.200 --> 0:09:18.840 or you could just have a general power of attorney. 0:09:19.880 --> 0:09:23.439 The durable power of attorney is a power of attorney 0:09:23.440 --> 0:09:26.840 that takes effect the minute you sign it. So the 0:09:26.840 --> 0:09:29.560 minute you sign it, while you're still walking around and 0:09:29.600 --> 0:09:33.400 find this person has the authority to act on your behalf. 0:09:33.559 --> 0:09:36.200 Now you may wonder, well, if I'm okay, why would 0:09:36.200 --> 0:09:39.400 I do this? For example, Tiffany, you have a business partner, 0:09:39.760 --> 0:09:43.760 so you may give him a business power of attorney general. 0:09:43.840 --> 0:09:46.000 It would be a it would be a business not general, 0:09:46.040 --> 0:09:49.120 but it would be durable, so it would take effect 0:09:49.200 --> 0:09:52.080 the minute you sign it. He would be able to 0:09:52.160 --> 0:09:56.760 make whatever decisions you specify in that document. So you 0:09:56.800 --> 0:10:01.920 could say he can't enter into contracts up to a 0:10:01.960 --> 0:10:05.200 million dollars up to five million. He can go and 0:10:05.240 --> 0:10:07.959 close bank accounts, but he can't sell the business. Right, 0:10:08.160 --> 0:10:11.240 so you would limit what he could do. But that 0:10:11.320 --> 0:10:14.000 power of attorney would take effect the minute you sign it, 0:10:14.800 --> 0:10:18.920 and then it would endure your incapacity. So if you 0:10:19.040 --> 0:10:23.880 became incapacitated, he would still have the power, and then 0:10:24.000 --> 0:10:28.280 it ends when you die or if you die. Okay, 0:10:28.679 --> 0:10:31.320 So that's what a durable power of attorney is. A 0:10:31.400 --> 0:10:35.400 general power of attorney only takes effect when you're incapacitated. 0:10:35.840 --> 0:10:39.880 It's also called like a springing power of attorney. Now 0:10:40.000 --> 0:10:42.880 for people who are just you know, for non business people. 0:10:43.800 --> 0:10:46.960 You can have different types of power of attorney. You 0:10:47.000 --> 0:10:49.520 can have a real estate one, so you could give 0:10:49.600 --> 0:10:53.000 someone a very limited power of attorney so that they 0:10:53.000 --> 0:10:55.560 could sign real estate documents on your behalf. So if 0:10:55.559 --> 0:10:58.360 you're buying a home and you're going to be traveling 0:10:58.840 --> 0:11:02.280 for work and you want someone else to sign all 0:11:02.320 --> 0:11:05.920 of your closing documents, you can give that person a 0:11:05.960 --> 0:11:08.640 real estate power of attorney. Now, the reason why you 0:11:08.640 --> 0:11:10.640 would want it to just be a real estate power 0:11:10.679 --> 0:11:14.640 of attorney is because that's the document that's giving somebody 0:11:14.720 --> 0:11:17.480 the permission or the authority to sign on your behalf. 0:11:17.559 --> 0:11:20.080 So it would be included with all of the closing documents, 0:11:20.080 --> 0:11:22.440 and it would be public, So you wouldn't want like 0:11:22.480 --> 0:11:26.520 your general power of attorney to be a public document. 0:11:27.080 --> 0:11:29.760 So you could create a real estate one. You could 0:11:29.800 --> 0:11:32.520 create one for your business. You could create one for 0:11:32.880 --> 0:11:35.440 if you have five businesses, you could create one for 0:11:35.559 --> 0:11:39.040 each business. You could create a tax power of attorney 0:11:39.040 --> 0:11:43.040 so that somebody has the ability to talk to the 0:11:43.080 --> 0:11:46.080 Irs or your state tax department on your behalf. You 0:11:46.160 --> 0:11:48.400 can carve it out as much as you want, or 0:11:48.440 --> 0:11:50.600 you can make it as broad as you want, but 0:11:51.280 --> 0:11:53.160 everybody needs to have that document. 0:11:53.600 --> 0:11:54.920 Oh where do we get one of those? 0:11:55.600 --> 0:11:55.760 Yes? 0:11:56.000 --> 0:11:59.319 Can I go to I've definitely like started maybe one 0:11:59.400 --> 0:12:01.720 or two power as an attorney because at least once every 0:12:01.720 --> 0:12:03.400 few years, I'm gonna get my life together and I'm 0:12:03.400 --> 0:12:05.679 gonna I'm going to get one. But I never do, 0:12:05.760 --> 0:12:07.800 but I'll like I started one on Rocket Lawyer. I 0:12:07.840 --> 0:12:11.160 tried on Legal Zoom, but I've never really gone to 0:12:11.360 --> 0:12:15.040 a real life attorney for that. And I don't know, 0:12:15.200 --> 0:12:16.400 I don't know why. But what do you what do 0:12:16.400 --> 0:12:17.000 you recommend? 0:12:17.720 --> 0:12:21.560 There are two things. Some states have what's called a 0:12:21.600 --> 0:12:26.440 statutory power of attorney, So the legislature of that state, 0:12:26.920 --> 0:12:31.079 for some committee, probably fresh out of law school, law 0:12:31.080 --> 0:12:36.760 students have drafted a power of attorney that would be 0:12:36.960 --> 0:12:40.960 accepted in that state. They've done that free of charge, 0:12:41.000 --> 0:12:44.439 and it's on some website. I have a list of 0:12:44.480 --> 0:12:46.120 all of those states. I don't have it with me, 0:12:46.240 --> 0:12:49.320 but I have a list of those states that have them. 0:12:49.679 --> 0:12:51.720 If you live in one of those states, you could 0:12:51.800 --> 0:12:54.360 go and download one of those, Like if you just 0:12:54.440 --> 0:12:57.200 wanted to cover your basis right now, you could go 0:12:57.240 --> 0:12:59.480 and download one of those. And most of the time 0:12:59.559 --> 0:13:03.120 what those states will have are different types of powers 0:13:03.160 --> 0:13:05.439 like the ones I just described, and then you can 0:13:05.520 --> 0:13:09.480 just check whichever one you're giving to that person. So 0:13:10.040 --> 0:13:13.040 I would do that before I would ever go to 0:13:13.120 --> 0:13:15.800 Legal Zoom and Rocket Lawyer. The reason I say not 0:13:15.880 --> 0:13:19.960 to go to those places, it's because what they're basically 0:13:20.040 --> 0:13:25.400 doing is just giving you a really generic document. A 0:13:25.400 --> 0:13:27.920 lot of the laws are updated in these states, a 0:13:27.960 --> 0:13:30.880 lot of the laws are updated with the different institutions 0:13:30.880 --> 0:13:34.960 that you could use power of attorneys with, and a 0:13:35.000 --> 0:13:41.080 lot of those companies don't really give you instructions on 0:13:41.840 --> 0:13:45.520 what is in the document and how to use it 0:13:45.640 --> 0:13:48.480 and how to effectuate the document, meaning like how to 0:13:48.559 --> 0:13:52.800 sign it to make sure is an actual document. So 0:13:53.000 --> 0:13:56.880 I would definitely not recommend using any of those programs 0:13:56.920 --> 0:13:59.960 for any estate planning documents, and a lot of core 0:14:00.200 --> 0:14:06.600 have actually started to not accept those documents because they're 0:14:06.640 --> 0:14:09.840 not being prepared by lawyers. It literally is just a 0:14:10.040 --> 0:14:13.800 document system that you go in, you put your state, 0:14:14.120 --> 0:14:18.440 and it generates a certain amount of text. So you 0:14:18.480 --> 0:14:21.040 would be way better off using the one that your 0:14:21.120 --> 0:14:24.160 state prepared because they had lawyers who were barred in 0:14:24.240 --> 0:14:27.880 that state prepare it. The other option is to go 0:14:27.960 --> 0:14:32.600 to a lawyer. Power of attorneys generally will cost you 0:14:32.640 --> 0:14:38.280 about two fifty three four hundred dollars. I mean four 0:14:38.360 --> 0:14:42.280 hundred would be the high end for a power of attorney. Generally, 0:14:42.280 --> 0:14:45.840 they're about I think two fifty. 0:14:45.880 --> 0:14:48.320 Here's another question, how do you pick your power of attorney? 0:14:48.480 --> 0:14:50.240 You know what in my case, you know, I have 0:14:50.280 --> 0:14:52.920 a husband and that kind of thing. But what are 0:14:52.920 --> 0:14:55.160 some options, like what would be a good person to 0:14:55.480 --> 0:14:57.600 you know it? Could it be a business partner or relative? Like, 0:14:57.640 --> 0:14:59.560 how do you choose the right person? It's a big 0:14:59.600 --> 0:15:00.680 it's a big deal. 0:15:01.160 --> 0:15:03.360 Right, So it would depend on the type of power. 0:15:03.560 --> 0:15:06.560 So if it's if it's a power for your business, 0:15:07.200 --> 0:15:10.680 then yeah, you may choose your business, your business partner, 0:15:10.720 --> 0:15:13.640 and then that power would be limited only to your business. 0:15:15.760 --> 0:15:18.400 It would have to be someone who you trust, someone 0:15:18.480 --> 0:15:22.000 who you believe would act on your behalf or act 0:15:22.080 --> 0:15:26.320 in a way that you would act if you're incapacitated. 0:15:26.920 --> 0:15:30.560 And what I always tell people is, don't pick someone 0:15:30.880 --> 0:15:34.680 as your power and then don't tell them. Discuss with 0:15:34.800 --> 0:15:40.800 them because surprise, right, Yeah, Like, so discuss with them 0:15:41.080 --> 0:15:45.400 what you would want in certain situations, what your goals 0:15:45.440 --> 0:15:49.400 are for certain things. So, for example, if you're making 0:15:49.440 --> 0:15:52.960 someone a power of attorney for a home I mean 0:15:53.040 --> 0:15:55.920 for a home purchase, you would obviously talk to them 0:15:55.960 --> 0:15:59.760 about You're like, hey, I'm going off to wherever for 0:15:59.800 --> 0:16:02.840 them or deal with my house issue. You would obviously 0:16:02.840 --> 0:16:06.400 give them some boundaries, but ultimately you would just have 0:16:06.480 --> 0:16:09.000 to trust that person and trust that they would do 0:16:09.080 --> 0:16:14.520 what you would want, especially for the durable one, because 0:16:14.560 --> 0:16:18.360 you would be incapacitated. And this document gives them the 0:16:18.440 --> 0:16:22.680 ability to act on your behalf, and anything that they 0:16:22.720 --> 0:16:27.280 sign would be binding unless they acted beyond the scope 0:16:27.800 --> 0:16:30.840 of the document, or they defraud you know, somehow they 0:16:30.880 --> 0:16:34.800 did something fraudulent, But other than that, you would be 0:16:35.120 --> 0:16:38.040 you would be held responsible for anything that that person 0:16:38.760 --> 0:16:41.920 signed on your behalf, So it would have to be 0:16:42.000 --> 0:16:44.640 someone who you trust. It may not necessarily be a 0:16:44.680 --> 0:16:47.680 family member. It could be a friend. And that's the 0:16:47.720 --> 0:16:51.720 other thing that I tell people to really consider all 0:16:51.720 --> 0:16:54.800 the time, or a lot of times, especially for single people, 0:16:55.480 --> 0:17:01.240 because most of us are with our friends and people 0:17:01.280 --> 0:17:04.320 who are in our age group right more than we 0:17:04.440 --> 0:17:08.640 are with our family. But if something happens to you, 0:17:08.640 --> 0:17:11.160 your friend would probably know I don't know, I mean, 0:17:11.720 --> 0:17:13.720 depending on how close you are to your family. But 0:17:13.800 --> 0:17:16.400 your friend would probably know which bank you bank with, 0:17:17.320 --> 0:17:20.800 They would know who your who your landlord is, or 0:17:21.440 --> 0:17:24.680 you know places you frequent and and things you order 0:17:24.920 --> 0:17:27.480 you know, like places you order from, like your Netflix account, 0:17:27.520 --> 0:17:29.560 or you know all of those things. Your friends would 0:17:29.600 --> 0:17:34.920 probably know that better than your parents would. But if 0:17:34.960 --> 0:17:39.560 you don't have a power of attorney and something happens 0:17:39.560 --> 0:17:43.200 to you, your parents can't just you know, Let's say 0:17:43.320 --> 0:17:46.879 your wallet is in your apartment and your bank card 0:17:47.040 --> 0:17:49.399 is in there, and for some reason, your PIN number 0:17:49.600 --> 0:17:52.480 is there with it. Your parents can't just go to 0:17:52.600 --> 0:17:56.600 your bank account and take out money to pay your landlord. 0:17:57.320 --> 0:18:00.879 That would be fraudulent. They would not have permission to 0:18:00.960 --> 0:18:04.320 do that. So in order for your parents to get 0:18:04.359 --> 0:18:07.280 any access or any of your next of ken, your brother, 0:18:07.560 --> 0:18:11.040 or whoever to get access to any of your assets, 0:18:11.359 --> 0:18:14.640 they would have to file a petition in court. That's 0:18:14.680 --> 0:18:19.000 called a conservative a conservatorship petition. In order to do that, 0:18:19.040 --> 0:18:21.080 they're going to have to hire a lawyer. Whenever a 0:18:21.160 --> 0:18:24.159 lawyer has to file a document in court. We've gone 0:18:24.160 --> 0:18:26.400 now from the two point fifty or even the five 0:18:26.480 --> 0:18:29.360 hundred for the POA to at least three or four 0:18:29.400 --> 0:18:32.800 thousand dollars. And then we're dealing with the court. So 0:18:32.880 --> 0:18:34.640 it's not like they're going to be like, oh, this 0:18:34.680 --> 0:18:37.480 person needs to pay Mand's you know, Mandid's mom needs 0:18:37.520 --> 0:18:40.960 to pay her rent. Let's get her in here right away. 0:18:41.240 --> 0:18:43.720 It doesn't happen that way. The court has a docket, right, 0:18:43.800 --> 0:18:46.720 so you just fit in wherever you can. The probably 0:18:46.760 --> 0:18:49.959 the quickest emergency hearing you could get would be like 0:18:50.080 --> 0:18:54.679 a Friday or something. Right, and then in order for 0:18:54.720 --> 0:19:00.000 you to become a conservator of anybody's money or assets, 0:19:00.600 --> 0:19:03.359 you have to get what's called a bond. It's like insurance, 0:19:03.840 --> 0:19:07.960 because they don't want somebody for the person who is 0:19:08.040 --> 0:19:11.560 incapacitated to come back and sue either you or the court, 0:19:11.920 --> 0:19:14.840 it would be a mess. So you're basically getting insurance 0:19:14.880 --> 0:19:17.520 to be able to manage this person's funny, Well, the 0:19:17.560 --> 0:19:20.159 court doesn't offer that, so you have to go to 0:19:20.200 --> 0:19:23.640 a special company made just for this to buy this 0:19:23.680 --> 0:19:30.000 conservative conservatorship insurance, and they have their own requirements. Sometimes 0:19:30.040 --> 0:19:32.720 they require that you get a lawyer. So even if 0:19:32.720 --> 0:19:36.840 you're trying to do this by yourself, which sometimes you 0:19:36.880 --> 0:19:39.200 know a lot of courts will have these forms online 0:19:39.240 --> 0:19:40.639 and you're like, Okay, I'm going to try to do 0:19:40.640 --> 0:19:43.200 this myself. Once you get to that stage, they may 0:19:43.280 --> 0:19:45.920 require that you hire a lawyer because they figure your 0:19:46.040 --> 0:19:49.199 chances of not screwing this up or way less if 0:19:49.240 --> 0:19:51.920 you have a lawyer who's guiding you through the process. 0:19:52.359 --> 0:19:57.679 Sometimes they do a credit check. Sometimes they require that 0:19:57.720 --> 0:20:00.600 the person seeking the bond be a US citizen, not 0:20:00.640 --> 0:20:04.880 even a resident, a US citizen. Sometimes they bar people 0:20:04.920 --> 0:20:11.479 who have criminal records. So I've I've had estates where 0:20:11.760 --> 0:20:16.000 no one in the estate, no relative, could qualify to 0:20:16.080 --> 0:20:19.600 be a personal representative, so they literally could not probate 0:20:19.640 --> 0:20:23.520 the estate either because they couldn't hire a lawyer, or 0:20:23.720 --> 0:20:28.600 they somebody was a felon, or somebody was a non citizen, 0:20:29.280 --> 0:20:33.920 and it's crazy, right, What you need to do is 0:20:33.960 --> 0:20:38.680 to just get a POA. POA waives all of that stuff. 0:20:38.520 --> 0:20:41.040 And does it apply to your your spouse as well, 0:20:41.040 --> 0:20:43.879 that they won't be able to access those accounts on 0:20:43.920 --> 0:20:44.760 your behalf. 0:20:44.520 --> 0:20:49.040 Unless yeah, unless they are listed on your account as 0:20:49.080 --> 0:20:54.960 a joint owner. Now again, we're talking about incapacity mm hmm. 0:20:55.560 --> 0:21:00.240 With death. If you're so with death, if you're bank 0:21:00.240 --> 0:21:03.160 account is under a certain amount, depending on the state, 0:21:03.320 --> 0:21:06.600 depending on the bank, your spouse may be able to 0:21:06.720 --> 0:21:09.240 access some of that money because they're your next of ken, 0:21:09.440 --> 0:21:12.280 or your parents may be able to, or your your 0:21:12.920 --> 0:21:16.240 child may be able to. But that's only if you die. 0:21:16.600 --> 0:21:19.760 Mm. So the limbo is what we're talking about. I 0:21:19.840 --> 0:21:23.120 say that, yeah, and people plan for death, if they're 0:21:23.119 --> 0:21:25.760 going to plan at all, they typically plan for death, don't. 0:21:25.880 --> 0:21:26.640 They don't plan for. 0:21:26.720 --> 0:21:30.919 The in between exactly exactly. So that's why I always 0:21:30.920 --> 0:21:33.199 shay the power and the power of attorney is not 0:21:33.240 --> 0:21:35.680 a document you need when you're sick, Like you could 0:21:35.720 --> 0:21:39.560 be traveling and you could need somebody to sign something 0:21:39.600 --> 0:21:42.199 for you. Or you could need someone to speak to 0:21:42.240 --> 0:21:45.879 someone on your behalf. So it's a document that you 0:21:45.920 --> 0:21:50.720 should have regardless of your age, your marital status, your 0:21:51.000 --> 0:21:53.919 your family status, whether or not you have children, young children, 0:21:54.080 --> 0:21:57.040 you know, whatever, like you should. Everybody should just have 0:21:57.160 --> 0:22:00.080 this document, especially if you're in a state that I 0:22:00.200 --> 0:22:02.399 did one for you. There's no reason to have to 0:22:02.520 --> 0:22:02.960 not have it. 0:22:04.000 --> 0:22:06.600 Okay, So that's power of attorney. 0:22:06.720 --> 0:22:08.600 You would pay is well worth it? 0:22:09.720 --> 0:22:10.200 Okay? 0:22:10.520 --> 0:22:12.280 Sorry, can you say that again. I talked over you. 0:22:12.359 --> 0:22:14.320 I said the two fifty you would pay or three 0:22:14.440 --> 0:22:16.720 hundred or five hundred even let's just say five hundred, 0:22:16.720 --> 0:22:17.800 it would be well worth it. 0:22:18.840 --> 0:22:22.359 Okay, Okay, so power of attorney check, we need that. 0:22:55.480 --> 0:22:57.840 What's next? We then number two and so. 0:22:57.880 --> 0:23:00.960 Okay, So the next thing is a little bit. I 0:23:01.040 --> 0:23:05.320 think it's controversial because and I'm talking about life insurance. Now, 0:23:05.400 --> 0:23:09.040 I will say that I don't sell life insurance. I 0:23:09.080 --> 0:23:12.480 don't know too many of the requirements and what's good 0:23:12.800 --> 0:23:17.680 and what's not. But I want people to think of 0:23:16.880 --> 0:23:23.080 life insurance in a different way than just well, I 0:23:23.119 --> 0:23:26.320 don't have I don't have any children, I don't have 0:23:26.359 --> 0:23:29.960 anybody to leave anything to. I don't own anything. What's 0:23:30.000 --> 0:23:33.240 the point of me paying X amount per month and 0:23:33.480 --> 0:23:35.240 leaving all this money? Who am I going to leave 0:23:35.240 --> 0:23:39.520 it to? And so I think that the number one 0:23:39.560 --> 0:23:41.439 thing that people say to me when I say everybody 0:23:41.440 --> 0:23:44.320